Tyler’s Take: High business tax hurts customers too

Published 11:18 pm Monday, May 17, 2010

tylerstarI have an apartment in Lansing that I share with three other lawmakers because sometimes session goes until midnight or later and by the time we get out it is too late to drive the three hours it takes to get back home to Niles. Whenever possible I try to get back home, but those times when it is not possible or when I have an early committee meeting it is nice to have a place to stay.

I recently decided I needed to get more furniture for the apartment. Not wanting to spend a lot of money, I went to a small, family-owned used furniture store in Lansing and found a couch that I liked. While I was looking it over, the owner came and struck up a conversation that quickly turned to the struggling economy.

Not wanting to reveal that I am a state representative because I wanted to hear some honest feedback, I asked the small business owner what he thought about the Michigan Business Tax.

Here was his response:

“You know, I don’t mind it,” the store owner said. “In fact, I wouldn’t mind paying even higher taxes – I just pass the cost on to the customer anyway.”

That’s when he lost the sale.

As much as this particular store owner might have been a poor salesman, he was actually speaking the truth. When the state raises taxes on businesses, as it did with the job-killing MBT 22 percent tax surcharge, the cost gets passed on to customers. That’s bad for Michiganresidents and it’s bad for our economy because it means Michigan companies cannot compete against businesses from other states.

Higher taxes are not the answer.  We need to create a competitive business environment so we can bring back jobs. More jobs mean more money for roads, more money for police and more money for schools.

I look forward to hearing your comments on these important issues.  Please feel free to contact me by calling (888) 373-0078 or e-mailing sharontyler@house.mi. gov.